Fear vs Hope

We really have two choices as we anticipate the future – fear or hope.  Which are you choosing?  With so many unknowns remaining after a volatile year that generated much fear in all of us, we have the option to lean another way, a braver way, a more vulnerable way, towards hope.  Fear or hope? Let’s look at what each of these approaches will offer us.

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Wrapping Up 2020

Well the holiday season is upon us and so too is the end of calendar year 2020!  2020 was certainly a year that presented businesses with many challenges, yet with that came the opportunity to think creatively and to explore new and different ways of adapting with the hope of sustaining revenue inflows, protecting valuable employees, and perhaps even expanding. But it is now time to wrap it up and Breakwater can help you do that and do it well.

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What you need to know about PPP loans today

  • Many of the Bank Forgiveness Application portals are now live!
  • Auto Forgiveness:
    • legislation is still pending for granting automatic forgiveness for loans <$150,000 .
    • If the change is made, a small business with a loan of less than $150,000 could have their debt forgiven if the borrower fills out a one-page form and attests that the funds were used in accordance with PPP guidelines. The current forgiveness application requires a detailed accounting of how the money was spent.  
  • Are you eligible?
    • Only loan proceeds spent on qualified expenses are entitled to forgiveness. Qualified expenses include payroll expenses (minimum 60% of proceeds) and non-payroll expenses (up to 40% of proceeds). For a full list of all qualified expenses and items that may reduce your forgiveness amount, please visit www.sba.gov.
    • Your loan proceeds must have been spent (or incurred, per program guidelines) within your covered period, which begins on the date your PPP loan was funded. Submitting a forgiveness application before spending your loan proceeds on qualified expenses could reduce your forgiveness amount.
  • Check with Breakwater!
    • Banks are encouraging clients to consult with an accountant or an advisor before applying, as a forgiveness application can only be submitted once through the Bank to the SBA.
  • How/when can you expect a decision
    • The SBA has 90 days from the receipt of the forgiveness application to complete the review and give a decision.
    • The Bank will notify the client of the final decision.
  • What’s the deal with paying it back?
    • the borrower submits its loan forgiveness application within 10 months of the Covered Period, they are not required to make any loan payments until the forgiveness amount is remitted to the lender by the SBA or advises how much of  the loan is not entitled to forgiveness to the Bank.
    • If any part of the loan issued after 6/5/20 the loan will have a 5 year maturity date, if the loan was received prior to 6/5/20, the maturity date will be 2 years unless the lender and borrower agree to extend the term to 5 years.
    • Deferred payments of employer taxes ends 12/31/2020 – first required payment = 50% of deferred taxes due 12/31/21, and  2nd payment of remaining balance due 12/31/22. Can be paid back earlier, but must be paid separately from “regular” tax payments. 

Taking care of yourself and your family as we continue to navigate the pandemic.

Summer is gone, fall is here and for many families it is back to a very stressful time.  Life during a pandemic with children and work is crazy to say the least.  Whether you are trying to help your first grader learn to read while demonstrating that your job has your undivided attention, or learning that life is one big tik tok while trying to maintain some rules and a zoom or two. Or maybe wondering how you virtually tour a college while being scared to let your baby go as you try to  keep up with your inbox, or dealing with a nest that was empty but is suddenly full again and figuring out how to create multiple work places in one home (sigh)…it is a challenge to say the least.

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We’ve said it before and we will say it again, entrepreneurship is not for the faint of heart.

It has never been easy to bear the financial, emotional, and mental load of running your own business, however, it is even more strenuous and depleting at this time in history.  You are carrying the weight of employees that need jobs but in a lot of cases can’t show up the way they used to. You are carrying the weight of clients that need support now more than ever but may be struggling now more than ever.  In addition to all of this you are carrying the weight of your family that depends on you to persevere. 

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How to continue to demonstrate your value when you can’t physically show up

There is no doubt that working from home is quite different from working in an office setting. The distractions can be almost insurmountable. Netflix, food, music, kids, going outside, calls, rinse, wash, repeat. All of these things call our names throughout the day at home and would not be screaming at us if we were in the office. How do you show up, stay focused and demonstrate what an asset you are when your circumstances have changed.

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